QIC Guru

There are many business management software packages out there today. Many of these packages promise a lot but deliver little. Once you’re in, the cost to operate and maintain the system grows exponentially. This is fine for large companies who almost expect something to cost a lot of money for it to be worth using, but let’s face it, how many small business owners can really afford this. If perceived worth is judged by how much or little someone pays for a product, it would seem that the only companies that get great value are the ones with deep pockets.

I suggest that the true value of anything we purchase, is the overall cost, actual benefit and ease of use over the long haul that makes a product truly valuable. For example we have two companies, both have approximately fifty employees. They have selected two software products as possible solutions for their management system needs.

Software product No.1 offers the following:  

• Upfront Cost: $ 5,000.00 (ALL MODULES)
• Monthly Support: $ 385.00, OR
• Yearly Support: $ 4,620.00 (for comparison purposes)
• Unlimited Users and Storage and support including revisions and new features.
• Upfront Cost = $ 5,000.00
• Cost over 5-Years: $ 28,100.00

 Software product No.2 offers the following:

 Core Tool Kit includes: Non-Conformances | Corrective/Preventative Actions | Document                                       Control | Tooling & Equipment Maintenance | Customer Service | MOPS (Trend Analysis) | Key Indicators Dashboard

• Cost for Core Tool Kit: $ 5,000.00 for First User
• Each Additional User: $ 1,500.00/User (49 required)
• Cost for Additional Modules:
• Auditing: $1,500.00
• Education & Safety: $1,500.00
• Health & Safety: $1,500.00
• Web-Based Surveys: $1,500.00
• Inspection: $2,500.00
• Annual Maintenance Fee: 18% of Total Cost including users fees
• Yearly Maintenance( 18% of Total): $ 15,660.00
•  Upfront Cost = $ 87,000.00
• Cost over 5-Years: $ 165,300.00 (training not included)

Both software applications offer similar capabilities, but the up front and ongoing costs are light years apart. Both companies have proven track records for achieving certification to international standards such as AS9100 and ISO 9001. Now, you tell me where is the true value?